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Required Information [The following information applies to the questions displayed below) Mead Inc began operations in Year 1, following is a series of transactions and

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Required Information [The following information applies to the questions displayed below) Mead Inc began operations in Year 1, following is a series of transactions and events involving its long-term debt investments in available-for-sale securities. Year 1 Jan. 20 Purchased Johnson & Johnson bonds for $27,500. Feb. 9 Purchased notes of Sony for $61,740. June 12 Purchased bonds of Mattel for $47, see. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $29,900; Sony, $52,55e; and Mattel, 557,45e. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $30, see. July Sold all of the bonds of Mattel for $40,750. July 22 Purchased notes of Sara Lee for $17,100. Aug 19 Purchased bonds of Kodak for $20,2ee. Dec. 31 Fair values for debt in the portfolio are Kodak, 519,775; Sara Lee, $19, eee; and Sony, $65,88e. Year 3 Feb. 27 Purchased bonds of Microsoft for $159, 8ee. June 21 Sold all of the notes of Sony for $63,200 June 30 Purchased bonds of Black & Decker for $57,400. Aug. 3 Sold all of the notes of Sara Lee for $16,ese. Nov. 1 Sold all of the bonds of Kodak for $25,825 Dec. 31 Fair values for debt in the portfolio are Black & Decker, 358,800; and Microsoft, $160,000 Required: 1. Prepare journal entries to record these transactions and the year-end fair value adjustments to the portfolio of long-term available: for-sale debt securities Journal entry worksheet Purchased bonds of Johnson & Johnson for $27,500. Note: Enter debits before credits Date General Journal Debit Credit Jan 20 Record entry Clear entry View general journal Journal entry worksheet Purchased notes of Sara Lee for $17,100. Note: Enter debits before credits. Date General Journal Debit Credit Jul 22 Record entry Clear entry View general journal Journal entry worksheet Purchased bonds of Microsoft for $159,000. Note: Enter debits before credits Date General Journal Debit Credit Feb 27 Record entry Clear entry View general journal Journal entry worksheet

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